Benefits of Bankruptcy
Interviewer: What are some of the other unusual benefits? I’ve heard bankruptcy can postpone a foreclosure or postpone an eviction. Are there any other unusual protections bankruptcy provides that most people don’t know about?
Adam: Bankruptcy filing can assist in postponing a foreclosure. The filing also assists with debt relief and will end garnishments, if they have a garnishment when they filed.
Interviewer: It can postpone or maybe stop a garnishment and you said that you may actually be able to use the money that has been taken from you in a garnishment to pay the filing of the bankruptcy itself, is that correct?
Adam: Yes, that is correct. Eventually, depending on how long the garnishment has been in existence, the debtor should be able to get most of that garnishment money returned.
Interviewer: You also remarked that it could suspend a foreclosure for a while, but not necessarily stop it forever, is that right?
Adam: It’s going to depend on the financial position of the debtor and what the equity is in the home and which Chapter they are going to be filing. However, filing for bankruptcy can at least slow the foreclosure process down until a point in time until everything is sorted out.
By Adam Hunt